The System on a Chip (SoC) Market is estimated to be valued at US$ 140.99 Bn in 2023 and is expected to exhibit a CAGR of 8% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
A system on a chip (SoC) integrates all components of a computer or other electronic system into a single integrated circuit. It designs complex electronic systems into a single chip that contains digital, analog, mixed-signal, and radio frequency functions. This helps in reducing development costs and improving overall performance. The increasing demand for portable electronic devices is propelling the SoC market.

Market key trends:
One of the major trends driving the growth of the SoC market is the increasing demand for smartphone technology. To support the growing capabilities of smartphones, manufacturers require high-performance and power-efficient SoCs. Current smartphones are equipped with multiple sensors, high-resolution cameras, fast processing speeds, and long-lasting batteries which need customized SoCs. Many leading smartphone manufacturers design in-house application-specific SoCs to optimize smartphone features and performance. For instance, Apple uses its proprietary A-series of SoCs like A13 Bionic for iPhones while Qualcomm and MediaTek supply customized Snapdragon SoCs for Android smartphones. The growing smartphone shipments globally will continue driving demand for innovative SoCs in the coming years.

Porter’s Analysis

Threat of new entrants: Low capital requirement poses a threat of new entrants. However, established players dominate the market due to their strong brand value and distribution networks.

Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated products. Switching costs are low for buyers.

Bargaining power of suppliers: Suppliers of raw materials have moderate bargaining power due to limited availability of technology and expertise required for manufacturing advanced SoCs.

Threat of new substitutes: Threat of substitutes is moderate as new technologies can disrupt the market. However, established players constantly innovate and upgrade their product portfolio.

Competitive rivalry: Intense due to presence of major global players competing on basis of technology, functionality and price.

SWOT Analysis
Strength: Growing demand for portable consumer electronic devices and adoption of IoT services. Increasing integration of SoCs in automotive and industrial applications.
Weakness: Vulnerable to design complexities, technological glitches and supply chain disruptions. High R&D investment required to develop sophisticated SoCs.
Opportunity: Emerging opportunities in artificial intelligence, autonomous vehicles and 5G infrastructure. Increasing deployment of SoCs in data centers and networking equipment.
Threats: Threat from open source platforms and proliferation of generic chipsets. Rising geopolitical tensions affecting global supply chains.

Key Takeaways

The Global System On A Chip (Soc) Market size is expected to witness high growth, exhibiting CAGR of 8% over the forecast period, due to increasing adoption of smartphones, tablets and other smart connected devices globally. Asia Pacific region dominates the SoC market with over 40% share owing to strong manufacturing base of consumer electronics in China, India, South Korea and other Asian countries. By 2030, Asia Pacific market size will reach US$ 60 Bn growing at a CAGR of 9%. North America SoC market is anticipated to showcase significant growth registering a CAGR of 7% during 2022-2030 on back of rising penetration of IoT devices, automotive electronics and industrial automation equipment in the region. By technology, digital signal processor segment is expected to register fastest growth on account of increasing incorporation of DSPs in applications related to imaging, communications and automotive.

Key players operating in the SoC market are Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc. Major players are focusing on mergers and acquisitions to enhance their product portfolio and geographical footprint. For instance, in 2021, Qualcomm acquired Nuvia for around $1.4 billion to strengthen its competitive

​Read More - https://www.pressreleasebulletin.com/system-on-a-chip-soc-market-estimated-to-witness-strong-growth-due-to-high-integration-levels-and-increased-usage-of-smart-iot-devices-trend/